Api Group Corp (APG)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 499,000 | 479,000 | 605,000 | 1,188,000 | 515,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,897,000 | 1,831,000 | 1,772,000 | 984,000 | 781,000 |
| Total current liabilities | US$ in thousands | 1,885,000 | 1,807,000 | 1,921,000 | 867,000 | 841,000 |
| Quick ratio | 1.27 | 1.28 | 1.24 | 2.51 | 1.54 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($499,000K
+ $—K
+ $1,897,000K)
÷ $1,885,000K
= 1.27
The analysis of Api Group Corp's quick ratio over the period from December 31, 2020, to December 31, 2024, indicates fluctuating liquidity levels that reflect the company's short-term financial stability.
At the close of 2020, the quick ratio stood at 1.54, signifying that the company had approximately $1.54 in liquid assets for every dollar of current liabilities, thereby demonstrating satisfactory liquidity. The ratio experienced a notable increase in 2021, reaching 2.51, which suggests an improvement in the company's liquidity position, potentially due to an increase in liquid assets or a reduction in current liabilities, thereby enhancing its ability to meet short-term obligations without relying on inventory sales.
However, the subsequent year, 2022, saw a decline to 1.24, indicating a reduction in liquid assets relative to current liabilities. This decrease suggests that the company’s liquidity position weakened during this period, possibly due to increased current liabilities or a decrease in highly liquid assets. Despite this decline, the ratio remained above 1.0, implying that the company continued to possess sufficient liquid assets to cover its short-term liabilities, albeit with less cushion than in previous years.
In 2023, the quick ratio slightly improved to 1.28, reflecting a modest recovery in liquidity levels. This slight increase may be attributed to either a rise in liquid assets or a modest reduction in current liabilities, indicating an effort to bolster short-term financial stability. The ratio remained relatively stable in 2024 at 1.27, maintaining a position slightly below the 2021 peak but still above the 2022 trough, which suggests a relatively steady ability to meet short-term obligations using liquid assets.
Overall, the trend demonstrates periods of liquidity enhancement, notably in 2021, followed by a decrease in 2022, with subsequent stabilization in the subsequent years. The fluctuations highlight the importance of examining underlying factors such as current asset composition and liabilities to fully understand the liquidity management and financial health of Api Group Corp. The ratios, consistently above 1.0 from 2020 onward, indicate that the company generally maintains adequate short-term liquidity, though the significant drop in 2022 warrants further investigation into changes in asset or liability management strategies.
Peer comparison
Dec 31, 2024